Revenue

Earning Revenue

Earning revenue using your aircraft when it is not being utilized can make strong fiscal sense. Desert Jet offers several ways to utilize your aircraft to earn revenue. From traditional charter revenue programs to innovative lease programs, our revenue programs are personalized to meet your exact needs.

Charter Management

Traditional charter is a great choice for those aircraft owners that employ a full time flight crew and have moderate to low usage needs for the aircraft. Traditional charter provides the aircraft owner with a percentage of the revenue earned during each hour the aircraft is flown in charter operations, normally 85%. This revenue helps the aircraft owner offset fixed costs of ownership, such as the salaries for the flight crew, insurance, hangar costs, maintenance and flight training expenditures.

Hourly Lease Arrangement

The traditional charter model doesn’t work for everyone, as not all aircraft owners have a need to employ pilots. For example, many aircraft owners are also pilots and just fly themselves where they need to go for business. For these owners, using a traditional charter model means employing pilots, an additional cost that just doesn’t make sense. The ideal solution is an hourly dry lease, where the aircraft owner is paid a flat rate hourly for use of the aircraft. The lessee pays for costs such as fuel, pilot salaries and training, and aircraft cleaning. This simple arrangement is the ideal solution that earns revenue without incurring a lot of additional costs.

Fleet Utilization Program

Another optimal revenue program involves placing underutilized aircraft into a full-time lease arrangement. The lessee pays for all operational costs of the aircraft, from maintenance, engine reserves, pilots, hangar, insurance, etc. as well as a fixed monthly amount to the owner, normally equivalent to roughly .8% to 1% of the aircraft’s value. This is a great way eliminate the costs incurred when an aircraft is placed for sale and not being utilized. This option also keeps the aircraft in an airworthy status with no expenditure required by the aircraft owner.

These are just a few ways that the savvy aircraft owner can realize revenue from the aircraft’s operations. Because there are many complicated FAA regulations and IRS implications involved in revenue-generating activities involving aircraft, it’s important to place your aircraft with a company who is familiar with all of the different options available.

Facts

Adding an aircraft to our operations normally takes an average of three days, while most other companies require a month lead time.

There are no outrageous costs in preparing your aircraft for charter operations, if it is already in an airworthy condition. Typical expenses average a few hundred dollars for the purchase of flotation devices and weighing the aircraft.

Our aircraft owners save an average of 20% (16% per gallon nationwide and 27% per gallon for fuel purchased on the West Coast) on the price of each gallon of fuel purchased (that’s over $1.00 per gallon) through our worldwide fuel procurement program. The monthly average savings for our light jet aircraft owners is $11,000.

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Desert Jet has helped numerous aircraft owners realize substantial revenue and cost savings in the operation of their aircraft. Contact our Certified Aviation Managers today to learn how we can help you meet your revenue goals at (760) 399-1000.